10 November, 2006

EU: Experts believe brewers must prepare for malt prices somewhere between EXW €/t 300 to 400

Analysts said October 31st that there is a great apprehension that the acreage of malting barley will shrink further in the EU, mostly in Germany, but also in France and Scandinavia.

The autumn planting weather was excellent, reports say that wheat and rapeseed acres have been expanded everywhere. Competition from bio-energy plants is the greatest threat to spring barley. The only hope is that farmers will be attracted by this year's price levels of malting barley. In Germany farmers representatives have stated that farmers must be paid €130,- to 150,- ex farm, and such level must be guaranteed for a longer period than one year. New crop markets in France reflect the German price pattern exactly. The result will be malt prices somewhere between €300,- to 400,- per ton ex works, for which brewers must prepare.

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